The quantity demanded x (in units of a hundred) of the Mikado miniature cameras

Question

The quantity demanded x (in units of a hundred) of the Mikado miniature cameras per week is related to the unit price p (in dollars) by p=-0.2x2 + 80 and the quantity x (in units of a hundred) that the supplier is willing to make available in the market is related to the unit price p (in dollars) by p=0.1x2 + x + 40. If the market price is set at the equilibrium price, find the consumers' surplus and the producers' surplus. (Round your answers o the nearest dollar.) consumer's surplus producer's surplus 13333 Need Help?Read It Talk to a Tutor

Explanation / Answer

Answer : Demand for the product P = -0.2X2 +80

Supply of the product P = 0.1X2+X +40

Demand = Supply

-0.2X2 +80 = 0.1X2+X +40

0.3X2+X -40 =0

0.1X =1

X =10 units

Price = $60

Consumer surplus = 1/2 *B*H

Consumer surplus = 1/2 *10*(80-60)

Consumer surplus = $100

Producer surplus = 1/2 *B*H

Producer surplus = 1/2 *10* (60-40) = $100

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